These are some of the common mistakes you should avoid making when buying a vehicle:

• Trying to fit the loan to the vehicle

  A common mistake when buying a car is trying to stretch the loan duration in order
  to afford a more expensive vehicle. Avoid taking loans with a very long duration since your
  early repayments won’t reduce your interest costs.

• Underestimating the total cost of ownership

  Make sure you take into account all costs associated with buying a car and also using it including petrol, toll, insurance, road tax, parking, and maintenance costs. Check out our article: what vehicle can you afford to buy?

• Not shopping around for your loan

  As with all loans, make sure that you speak to a few different banks and money lenders to compare the interest rates and terms offered. The lower the interest rate, the better. Remember, if it’s a flat rate being used for your loan, the effective interest will be almost double that rate. Also, check out how the bank calculates your early repayment options.

• Rushing into a purchase

  Sometimes you might be tempted by things that don’t really matter in the long run. Maybe a dealership offers you a lot of freebies that they claim is a one-time offer and you start to feel pressured into making a quick decision. Don’t! Stay focused on the important points like what you need the vehicle for and how much you can really afford to pay for it.